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Project Selection Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity Key Learning Points Ask yourself the Question: Is the project VIABLE now? Is the project SIGNIFICANT? Is there a MOTIVATED Team? Six Sigma Simplicity Project Selection remains the single most important element of the process. Six Sigma Simplicity Project Selection Organizations must develop a process to define strategic focus area and then effectively scope them into manageable DMAIC improvement projects Six Sigma Simplicity Process map on selecting CI projects Determine the needs of key customers and strategic business needs Determine metrics and goals Scope the project Project execution applying CI methodology Determine a baseline and bottom line benefits Create a project charter and overall plan Project reportsout to upper management Identify project opportunities Prioritize projects opportunities Yes Viable CI Project now ? No Store project ideas for future reference Yes Communicate and leverage success Signifiant contribution to QMS? No No Six Sigma Simplicity Yes Motivated team? Determine the needs of key customers and strategic business needs Example: Break out core processes Function Head count WIP Backlog Cycle time 6S Waste Feedback Accounts 3 20 days 1 hour C Waiting, Motion Needs quicker data Dispatch 2 1 day 1 hour D Scrap Incorrect paperwork, hockey sticks Assembly 10 4 weeks 1 week E Scrap, Motion Not enough parts Manufacture 50 1 week 1 week B Transport, Rework, over production Tooling down Purchasing 8 2 months 1 week C Over production, rework, transport, waiting Reducing cost Engineering 20 4 months 1 month C Rework, waiting, motion Unclean orders Applications/Order Entry 10 5 days 1 day E Scrap Workload Six Sigma Simplicity Identify project opportunities Non- Value added / Value added work Process/Activities Value added 2% - 15% Non-value added 85% - 98% Essential Non-essential Minimize Now Categorize into the 7W’s! Six Sigma Simplicity Eliminate Identify project opportunities Combine 7W and TOC. Cost X X X x 7W’s Waiting Transportation Motion Defects Overproduction Process, long cycles Inspection Six Sigma Simplicity Throughput X X X X Identify project opportunities 6S is the foundation for CI. Target 6S at the worst areas. The Six S’s Cost Throughput Sort Separate Motion, Transport Waiting Straighten i.e.: Inventory – put in order Shine Standardise Safety Over production, Looking, Waiting Don’t impede flow Scrap Over processing Scrap Waiting Sustain Discipline (*Safety – 1st in everything.) Six Sigma Simplicity Eliminate waste Prioritize project opportunities Ranking goals and CIP per goal CIP Projects 3 4 3 3 3 3 CIP Ranking per effect on Y(x) 3 2,5 2,5 2,5 Gr an Tot al i ng R ank C ham pi on Goal D at a er C hart on ti m e deli ve ry R ank i ng qual i ty W. I.P . ables recei v inven tory l cost Mat er ia Goal Total Y Meet EMA profit plan – 15 % over 2001 Reduce EMA working capital example onlyfrom € 29.5 M. to € 26.5 M. Vol um e XY matrix - example 2,5 Total Total Total X1 Implementation DOS Engineering 2 0 0 5 0 8 10 75 10 0 10 10 75 150 X2 Implementation DOS Test Field 1 0 0 5 0 8 10 72 10 0 10 10 75 147 X3 Implementation DOS Assembly and Repair 1 0 0 5 0 8 10 72 10 0 10 10 75 147 X4 increase processtime for manufactor GASPAC parts 8 0 0 0 9 10 10 111 0 0 0 10 25 136 X5 Implementation DOS QA 0 0 0 5 0 8 10 69 0 0 0 10 25 94 X6 Reduction of manual effort of preodering for duplicate orders 7 8 1 0 0 0 10 86 0 0 0 0 0 86 X7 Reduction / Standardization of raw material 0 8 10 0 0 4 3 83 0 0 0 0 0 83 5 0 0 5 0 5 10 75 0 0 0 0 0 75 0 0 5 0 0 5 10 60 0 0 0 0 0 60 0 0 0 5 0 10 0 45 0 0 0 0 0 45 X8 X9 X10 Reduce cycle time of panel documentation from 45 to 25 days Increase avalibility of tools for manufactoring a Gaspac Implementation DOS Reliability Six Sigma Simplicity Project Desirability Matrix The three attributes of a potential project can be visualized on the following matrix: Probability of Success IMPACT Hi Low Med Med Hi Low Low Med EFFORT Six Sigma Simplicity Hi Project Desirability Here are three Attributes for evaluating Project Desirability: Business impact Effort required Probability of success Meaningful & Manageable Six Sigma Simplicity Business Impact Improve Corporate credit ratings 20% RONA / 15% Primary working capital to sales Implement and sustain Quality Mgm’t System 15% Operating Profit / 15% OP % Sales Acquisition growth of $X.X B Organic growth of $X.X B Top Level Goal Deployment (example) Six Sigma Simplicity Examples of Little or No Business Impact Creating or revising a report Installing a measurement system Quantifying the performance of a process Improving a supplier’s performance without any arrangement to create benefits for the Organization Reducing cycle time of a non-bottleneck operation Six Sigma Simplicity Effort Required Definition This includes not only Black Belt time, but also the time that will be required of the team members, and any expenditure of money. Typical High Effort installing a new computer system improving profitability of an entire product line or channel “fixing” the annual planning process Six Sigma Simplicity Definition of Probability of Success An assessment that takes into account the various risk factors Time - uncertainty of the completion date Effort - uncertainty of the investment required Implementation - uncertainty of roadblocks Typical Low Probability of Success won’t show the benefits within a year depends upon completion of other risky projects requires help from extremely busy people is not aligned with your Company objectives (QMS) Six Sigma Simplicity Project Desirability Matrix The desirability of a project increases as you move from the lower right to the upper left, and as the circle gets larger Probability of Success IMPACT Hi Low Med Med Hi Low Low Med EFFORT Six Sigma Simplicity Hi Scope the project Project Selection Champion Process Owner Financial Controller 12000 9000 6000 3000 0 Scratches Cracked Light Other 12000 9000 6000 3000 0 Operato r Dro pped M aterial Cuts Other 8000 6000 PPM Aligned with Strategic Plan Not solving world hunger (Scope) Significant Business Impact Supported by & with Data Agreed to by: PPM PPM 4000 2000 0 P art Sticks To Rack P ackaging Other Champions should "pick battles big enough to matter, small enough to win" Six Sigma Simplicity Project Selection Six Sigma Foundations Continuous Improvement Training Six Sigma Simplicity